Digital lending startup CreditMantri has secured $7.6 Mn in its Series B round of funding led by Quona Capital. The investment by Quona has been facilitated via its Accion Frontier Inclusion Fund. Elevar Equity, IDG Partners, Accion Venture Lab, and Newid Capital also participated in the round.
The raised funds will be used to grow its user base, strengthen product proposition and build the team.
Based in Chennai, the fintech startup was launched in 2012 by Ranjit Punia, Rajasundaram Sudarshan, and Gowri Thyagarajan Mukherjee. The startup uses credit reports and data generated from mobile phones and social media to assess their loan potential.
Ranjit Punja, CEO and co-founder of CreditMantri said, “The richness in the quality of our credit profiles is validated by the uptake and portfolio performance of the tailormade loan products launched in partnership with financial institutions. The response from consumers and lenders has far exceeded our expectations and validates that we are solving a real market need.”
The CreditMantri platform enables users to discover loans, credit cards best matched to the profile from lenders across the risk continuum, resolve and dispute issues on existing loans and borrowings, and reduce current borrowing costs as well. On the other hand, it providers the borrowers a better control over their credit health through a concerted customer focussed proposition.
Commenting on the investment, Ganesh Rengaswamy, founding Partner, Quona Capital said, “Lending in India, and doing so responsibly, is a huge opportunity, and alternative data is the key to unlocking this potential. The digitisation of Indian consumers’ financial data, pioneered by CreditMantri, is the catalyst that will help build a truly financially inclusive India. Quona is very excited to partner with CreditMantri team and we have tremendous confidence in the team and the way they are solving this important problem.”
The company claims to have 1.4 Mn users till date with over 2,000+ credit relevant data points used to process the credit profile using CreditMantri’s proprietary algorithm.
In June 2015, the startup previously raised $2.5 Mn in Series A round of funding from IDG Ventures India, Elevar Equity, and Accion Venture Lab. Earlier last month, Bengaluru-based online lending platform Capital Float raised about $2.5 Mn (INR 17 Cr) from IFMR Capital Finance and its alternative investment fund.